Startups in Ukraine: Where You Can Find Support
Business practices 3 min read
Valery Krasovsky, CEO and co-founder of Sigma Software, has shared his ideas on how IT service companies give a boost to the startup movement in the April issue of Forbes Ukraine. Below is the gist of the article translated into English.
When analyzing the reasons for the success of global startup centers – US, Israel, and Sweden – government support, a large number of talented engineers, an established infrastructure are often mentioned as success factors, and this is true. A large consulting business rarely appears on this list, however, its role is significant. Let’s look at the example of our company Sigma Software Group in detail.
The key to the success of a b2b product is that it solves a business problem here and now in a way that no one has solved it before. Ideas for such products arise when a person is familiar with specific domains and business needs. This comes only with the engineering experience from consulting companies, where it is possible to work in various domains, with a wide geography of customers, and with businesses of different sizes.
An example is the startup Clean.io, which became the Startup of the Year 2019 in Baltimore, USA, and received an investment of $7 million. Our team was a co-founder, investor, and co-author of the solution that fights malicious ads. Having real experience working in the domain, we saw the problem in the market, and with this product we solved it while receiving a high level of interest from customers.
Investments and Clients
The main thing for a startup is to get investments and find clients. It is not easy for inexperienced business people to do both – they don’t have the right connections. It is even more difficult for a startup to get a large corporation as a client, which has many requirements for suppliers – from well-built processes to mandatory certifications. Some customers may be interested in a turnkey product when it is not enough just to offer a solution, you also need to know how to integrate it into the client’s systems and customize it for client`s specific needs. Consulting companies often work with large corporations. This means that they have already met all their requirements and have known how this or that product can be integrated with the client’s systems. A startup has a better chance of getting clients in partnership with a consulting company.
Now the Swedish AdTech startup DanAds have major clients such as Philips and others with the help of Sigma Software.
Team and Infrastructure
The success of the product leads to the growth of the team and the need to hire diversified professionals. Here the cooperation with a consulting company can be a go-to guy because in such companies there are many experts of different levels and in various areas.
Instead of renting an office, a growing startup can take advantage of space and administrative support from service companies. Today the Sigma Software Labs platform is the only business incubator based on a service company and provides access to world markets, investments, offices, and all kinds of assistance. It was founded two years ago.
Years of experience prove that support from IT service companies can seriously affect the development and success of a startup, and it is apparent that this practice should be enhanced and advanced in Ukraine.
Valery started working in IT as C++ software engineer and Team Lead back in 1998 in Telecom business. He co-founded Sigma Software in 2002 together with his friends and served as a company CTO and COO. Valery is acting as CEO since 2014 and concentrates on strategic company initiatives and business development.